Pension Bill a go?

Tuesday, 10 May 2011 00:49 - - {{hitsCtrl.values.hits}}

By Uditha Jayasinghe

The controversial Pension Bill is heading to an interesting climax, with the document being tabled before Parliament at the next session but with several key amendments.Labour Minister Gamini Lokuge told the Daily FT that the Pension Bill would be tabled before Parliament on 24 May, but would include several key changes from the earlier draft.

Following strong protests and several rounds of discussions with trade unions and private sector chambers, the fresh draft of the bill that will be compiled by the Finance and Planning Ministry will address several of the central issues highlighted by the stakeholders, he assured.

Accordingly, in the new draft, the employee will be able to withdraw his salary from the day he retires rather than at age 60, which was stipulated in the earlier draft of the bill. In addition, the wife as dependent will be able to obtain the pension after the holder’s death; previously this was allowed only to disabled dependents and even then only 60% of the capital sum was given.

“The Finance Ministry is formulating the latest draft and it will be presented to trade unions and private sector representatives before being presented to Parliament,” he stated, adding that many of the concerns had been addressed.

Meanwhile, the JVP-backed Inter Company Employees Union (ICEU) staged a petition signing in front of the Labour Ministry in Narahenpita against the proposed bill and pledged to expand it to other work places countrywide. ICEU Chairman Wasantha Samarasinghe has protested the presentation of the bill to Parliament before it could be scrutinised by trade unions.

The Pension Bill was initially tabled before Parliament on 27 April, but was postponed after a petition was filed against it in the Supreme Court. However, last week it was decided that the Pension Bill was not unconstitutional and the verdict was presented to the Speaker.

Parallel to these developments, trade unions met with President Mahinda Rajapaksa and presented their views, resulting in a National Labour Advisory Council (NLAC) meeting. At the discussion, officials from the Finance Ministry including Treasury Secretary Dr. P.B. Jayasundera listened to the issues raised by the stakeholders and agreed to make amendments to the Pension Bill.